Milk Communities

Around 2009–2011, smallholders produced more than 80% of Ukrainian milk, although much of this output was used for household consumption rather than commercial sale. This segment consisted largely of subsistence farmers operating small-scale, low-input systems with limited technical knowledge and access to modern production practices. As a result, incomes from milk production were generally low, and overall milk production was declining due to a reduction in cattle numbers and structural inefficiencies in the sector.  

Ukraine was a net exporter of milk and dairy products during this period. However, export performance was weakening, while imports of higher-quality dairy products were increasing. The sector faced major constraints related to both the declining quantity and poor quality of raw milk, largely due to the dominance of household-based production. Rural households encountered multiple challenges, including limited access to credit and high interest rates, which restricted investment in machinery and led to reliance on family labour. They also faced difficulties in accessing high quality feed and forage, as well as gaps in knowledge related to animal nutrition and ration balancing.  

At the same time, FAO evidence suggested that, despite these constraints, small-scale milk producers had the potential to compete with larger, capital-intensive dairy farms under appropriate institutional and technical support conditions 

Launched in 2019 with the support of the Danone Ecosystem Fund, Heifer Ukraine and Danone Ukraine co-created the “Ukraine Milk Communities” project to support the development of family dairy farming in Ukraine. The project focused on strengthening milk cooperatives by organizing individual milk producers into structured groups and transforming these cooperatives into professional family farming operations through equipment, renovation, and upgrading of existing facilities. 

In parallel, an economic network was developed around these farming structures to ensure the sustainability of their activities and improve access to markets. 

Over time, the initiative evolved from building and equipping cooperative structures toward strengthening the capabilities of farmers, enhancing their skills, and resilience within the dairy value chain.